The assessee, a company registered u/s 25 of the Companies Act,...

The assessee, a company registered u/s 25 of the Companies Act, 1956, with the main objective of supporting and promoting the export of gems and related activities, was denied exemption u/s 11 by the Assessing Officer (AO). The AO considered the exhibition activities conducted by the assessee as commercial, inferring a profit motive. However, the Tribunal held that the assessee's main object was covered u/s 2(15) and the AO failed to point out any deviations. The Tribunal observed that the assessee's activities were for the promotion of trade and business of its members, and the revenue could not establish any business transactions during the exhibitions. Relying on its own earlier orders, the Tribunal ruled that the assessee was eligible for exemption u/s 11 for the assessment year in question, and the denial of carry forward of deficit from earlier years was contrary to the jurisdictional High Court's binding judgment.

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